India Inc may see 8% salary hike in 2009
India Inc is expected to witness an average eight percent salary increase this year.
New Delhi: India Inc is expected to witness
an average eight percent salary increase this year and as
much as 50 percent of companies have strong hiring plans for
the next three months, a survey by global HR consultancy
The Mercer India Monitor quarterly survey also shows an
optimistic sentiment for 2010, with salaries expected to rise
by as much as 10.9 percent next year.
"Despite the fact that past year saw slowest growth in a
long time, the economy is expected to grow at over six per
cent and industry is estimated to see overall average salary
hikes at 8 percent for 2009," Mercer`s information product
solutions business India leader Gangapriya Chakraverti said.
"Overall forecast for 2010 is at 10.9 percent compared
to eight per cent this year. Most sectors are forecasting
double digit increases for next year," Chakraverti added.
Moreover, most companies have presented a more optimistic
picture on workforce and compensation with 50 percent of
respondents hiring in the next three months either to add
headcount or to replace for attrition so far, the survey said.
In terms of sectors, the IT space, which had a `long
lasting` lull of nearly zero per cent salary increase this
year, is showing improved sentiments.
The survey revealed that the IT sector is expected to see
salary increases by a few percentage points next year.
A majority of the companies used guaranteed cash as the
basis for arriving at the increments, the Mercer survey said.
Some sectors have doled out reasonably high salary
increases this year, despite the economic recession.
Salary increases in the pharmaceutical, consumer and
manufacturing sectors have been in excess of seven per cent,
the report stated.
Automobile/auto component industry has emerged as a
sector with fairly reasonable increases this year.
IT Industry has been worst impacted with an almost zero
increase this year across most companies. But telecom has
brought some respite with a fairly reasonable salary hike
budget thus pushing the overall increase in the Hi Tech space
to about five percent.
Besides, chemical is the other sector which has fared
reasonably well, while energy has shown a pessimistic
sentiment with most companies extending lower salary increases
than usual and a few deferring salary increases indefinitely.
In terms of hiring plans, over 50 percent companies in
the pharmaceutical, chemical and IT sectors have indicated an
intention of hiring to add headcount.
However, few companies in manufacturing and pharma sector
have indicated an intent to reduce headcount over the next